As shoppers reach a breaking point over value, one major chain is making a significant, painful correction to its physical presence this coming year.
Wendy’s is trimming its U.S. footprint after a rough end to the year, confirming plans to close between 240 and 360 domestic restaurants in the first half of 2026, which represents about 5% to 6% of its U.S. locations.
Some of the closures have already taken place these past few months, including restaurants located in West Lafayette, Indiana; Stockton, California; and Langhorne, Pennsylvania.
The Data Behind the Downsizing
The announcement was made recently (February 13), as part of Wendy’s fourth-quarter and full-year 2025 earnings release, which showed a sharp slowdown in the company’s core market.
Specifically, U.S. same-restaurant sales fell 11.3% in the quarter, contributing to a 10.1% drop in global comparable sales. It marked one of the chain’s steepest domestic declines in years.
Investors reacted quickly to the announcement. Wendy’s shares slid in premarket trading on the weak 2026 earnings guidance and planned restaurant closures. By early afternoon that same day, however, the stock had rebounded, closing up 3.65% at $7.54 after ranging from $7.08 to $7.93 during regular trading.
Outlook vs. Reality
On paper, the quarter wasn’t a complete miss. Adjusted EBITDA came in at $113.3 million, slightly ahead of analyst estimates of about $112.6 million. Adjusted earnings per share were 16 cents, topping expectations of 14 to 15 cents, while revenue of $540.75 million was roughly in line with forecasts. For the full year, Wendy’s reported adjusted EBITDA of $522.4 million and adjusted earnings of 88 cents per share.
The outlook, however, was softer. The company projected 2026 adjusted EBITDA of $460 million to $480 million and adjusted earnings per share of 56 cents to 60 cents—well below analyst expectations of about 86 cents per share.
Wendy’s hasn’t detailed which additional locations will close, only that the cuts will focus on restaurants that have consistently underperformed. For now, the company is betting that a smaller footprint and steadier margins will put it on firmer ground in 2026.
Sources: Wendy’s, New York Post